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Seed to Feed Concept

Herbalife – “Seed to Feed” Strategy – Ingredient Tracability

QUALITY, QUALITY, QUALITY!

10 October 2010

This was a momentous week for us in China where we held a ground-breaking ceremony for our new multi-million dollar, state-of-the-art extraction facility for botanical extracts, powders and pure compounds to be used in our inner and outer nutrition products.

This is a giant step in fulfilling our ‘seed to feed’ strategy to improve quality control, purity and traceability on all ingredients throughout our supply chain.

The new facility will be located in Changsha, Hunan Province, China. It is a joint venture with NatSource Chemicals and its principal Dr. Qun Yi Zheng, Ph.D., who is a leading expert in the field of extraction and processing of natural compounds for use in food, supplements and pharmaceuticals.

This new extraction facility will purchase botanicals directly from farms in Hunan province and other regions, perform extraction and other conversion processes and then send these processed raw materials directly to our manufacturing facilities in Suzhou, China and Lake Forest, Calif. or to our third party manufacturers throughout the world. The new extraction plant will produce botanical extracts including teas, guarana, chamomile, broccoli and bilberry, among others, that we use in many of our products. We are also in the process of entering into strategic supply agreements with farmers in Hunan and other provinces to provide ultimate traceability for our ingredients.

Changsha, the capital of Hunan province, was chosen for its location on the banks of the Yangtze River as home to many of the world’s nutritional herbs and botanicals.

Our new 80,000 sq. ft. facility will be capable of processing approximately 8,000 metric tons of raw materials annually through extraction, purification and drying of powders and liquids. The new plant will create approximately 120 local jobs. The project received support from the Hunan provincial and Changsha city governments.

Our chief operating officer, Rich Goudis, was in China along with other Herbalife executives for this grand event.

How fitting to think that Mark Hughes went to China over 30 years ago to learn how to make the best nutrition products and now we are in China to help make our products even better.

This is what the Herbalife decade is all about – being better, stronger and the best nutrition and direct selling company in the world.

Michael O. Johnson
CEO Herbalife International

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